Gold prices in the United Arab Emirates went up on Monday, according to FXStreet. The price per gram increased to 501.42 AED from 498.37 AED on Friday. Meanwhile, the price per tola rose to AED 5,848.50, up from AED 5,812.84. FXStreet provides prices based on international values converted to local currency and unit measurements. These prices are updated daily and may differ slightly from local market rates. Important figures include 501.42 AED per gram, 5,014.16 AED for 10 grams, and 15,596.00 AED for a troy ounce.

Gold As A Safe Haven Asset

Gold has long been seen as a reliable store of value and a medium of exchange. It’s regarded as a safe-haven asset and protection against inflation and currency decline. Central banks are the largest holders of Gold, buying 1,136 tonnes in 2022, marking the highest annual purchase recorded. Gold’s price often moves in the opposite direction of the US Dollar and US Treasuries. It is influenced by geopolitical events, fears of recession, and shifts in interest rates. Generally, a strong Dollar stabilizes Gold prices, while a weaker Dollar can push prices up. The recent rise in gold prices above 501 AED per gram is noteworthy. As an asset that doesn’t generate income, gold typically does well when interest rates are expected to drop. With the US Federal Reserve signaling a more relaxed approach to rates through 2025, conditions are becoming more favorable for gold. We should also consider the ongoing demand from central banks, which creates a solid price foundation. In 2023, central banks added nearly a record 1,037 tonnes to their reserves, continuing a trend of moving away from the US dollar. This consistent buying pressure helps cushion against market dips.

Factors Affecting Gold Prices

Global economic indicators suggest potential increases for gold as a safe-haven asset. The latest Global Manufacturing PMI data from November 2025 was 49.6, signaling a slight contraction and raising concerns about a slowdown. Typically, such uncertainty drives investment away from riskier stocks and into the safety of gold. For traders dealing in derivatives, this implies preparing for higher volatility as we approach the new year. Purchasing call options or using bull call spreads might allow traders to profit from a potential increase in gold prices while controlling their risk. These strategies appear wise given the current economic situation and central bank activities. The inverse relationship between gold and the US dollar remains important. As the market adjusts to a less aggressive Federal Reserve, the dollar could weaken. A lower dollar makes gold more affordable for holders of other currencies, likely increasing demand and driving prices higher. Create your live VT Markets account and start trading now.

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